GE Aerospace (GE)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 26,476,000 | 27,815,000 | 33,923,000 | 38,243,000 | 37,160,000 | 38,452,000 | 38,164,000 | 38,870,000 | 36,525,000 | 36,171,000 | 22,750,000 | 8,843,000 | -378,000 | -1,080,000 | -2,893,000 | -8,282,000 | -7,975,000 | -14,878,000 | -14,525,000 | -10,772,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 19,342,000 | 18,874,000 | 18,598,000 | 29,855,000 | 27,403,000 | 28,665,000 | 31,194,000 | 31,652,000 | 33,696,000 | 31,475,000 | 34,649,000 | 39,005,000 | 40,310,000 | 37,477,000 | 33,487,000 | 33,585,000 | 35,552,000 | 33,269,000 | 33,674,000 | 35,284,000 |
| Return on total capital | 136.88% | 147.37% | 182.40% | 128.10% | 135.61% | 134.14% | 122.34% | 122.80% | 108.40% | 114.92% | 65.66% | 22.67% | -0.94% | -2.88% | -8.64% | -24.66% | -22.43% | -44.72% | -43.13% | -30.53% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $26,476,000K ÷ ($—K + $19,342,000K)
= 136.88%
GE Aerospace's return on total capital experienced a significant improvement over the past few quarters. The ratio was negative in the first half of 2020, indicating that the company was not generating sufficient returns to cover its total capital investments. However, starting from the first quarter of 2022, the return on total capital turned positive and showed a consistent upward trend. By the end of 2024, the ratio reached a high of 182.40%, reflecting that GE Aerospace was effectively utilizing its capital to generate profits.
This increasing trend suggests that the company's operations became more efficient and profitable over time. Investors and stakeholders may view this positive trend favorably, as it indicates that GE Aerospace's capital investments were yielding attractive returns by the end of 2024.
Peer comparison
Dec 31, 2024